Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Orogen Royalties Announces Record Royalty Revenue
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Orogen Royalties Announces Record Royalty Revenue
and Profitable Quarter for Q3-2023
Vancouver, B.C . November 28, 2023 (TSX.V:OGN) (OTCQX:OGNRF) Orogen Royalties Inc. (“Orogen” or the
“Company”) is pleased to report profitable financial results from its operations for the third quarter ended
September 30, 2023.
Paddy Nicol, CEO of Orogen, commented: “Orogen’s profit primarily resulted from record royalty revenue from the
Ermitaño gold-silver Mine where increased production rates, strong gold grades and improvement in recoveries were
achieved. Prospect generation remains profitable and we continue to obtain payments and transact on projects that
organically grow our royalt y portfolio. In addition, our positive cashflow from operations continues to strengthen
our balance sheet and allows us to take advantage of counter cyclical opportunities in the current market.”
“We remain highly encouraged by the progress of AngloGold Ashanti NA‘s (“Anglogold”) Expanded Silicon Project in
Nevada, where drilling focused on the Merlin area, with eight drill rigs operating. According to AngloGold, the Mineral
Resource delineation program at Merlin continues to return highly encouraging results that confirm and extend the
modelled mineralization.1”
Q3 2023 Highlights
All amounts are in Canadian dollars unless otherwise stated.
• Net Income from Operations: Net income was $675,989 for the three-month period ended September 30,
2023, compared to a net income of $123,461 for the same period in 2022. This resulted in a net income of
$1,439,818 or $0.008 per share year to date (2022 - net loss $99,093 or $0.001 per share).
• Royalty Revenue: Royalty revenue of $1,628,409 was earned during the current period with 614 attributable
gold equivalent ounces (“GEOs”) sold at average price of US$1,928 per ounce, up 29% compared to the same
period in 2022 and up 41% compared to the previous quarter.
• G&A Expenses: General and administrative expenses of $858,323 were incurred in the current period, up
7% compared to the same period in 2022 and down 10% compared to the previous quarter.
• Cash flow: Cash flow of $733,377 was used in operating activities in the current period. Cash flow generated
from operating activities, excluding changes in non-cash working capital, was $993,571, up 565% compared
to the same period in 2022 and up 46% from the previous quarter.
• Working Capital: The Company has working capital of $17,473,228 at September 30, 2023 compared to
$12,083,375 at the beginning of the fiscal year, an increase of $5,389,853. The Company has no long-term
debt.
For complete details of the Company’s financial results, please refer to the condensed interim consolidated financial
statements and MD&A for the nine-month periods ended September 30, 2023, and 2022. The Company’s filings are
available on SEDAR at www.sedarplus.ca and on Orogen’s website at www.orogenroyalties.com. Please also see non-
IFRS Measures at the end of this news release.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Summary of Results
Consolidated Statement of Income and Comprehensive
Income
Three-Month Periods Ended September 30,
2023 2022
Income from Royalties $ 1,628,409 $ 1,158,928
Income from Prospect Generation activities 478,083 202,956
Interest income 57,110 16,168
Total income 2,163,602 1,378,052
G&A 858,323 802,149
Operating income (loss) before other adjustments $ 1,305,279 $ 575,903
Other income (loss) (99) 15,476
Loss on marketable securities fair value adjustment (629,191) (467,918)
Net income (loss) and comprehensive income (loss) for
the period
$ 675,989 123,461
Basic income (loss) per share $ 0.003 $ 0.001
Diluted income (loss) per share $ 0.003 $ 0.001
Non-IFRS and Other Measures
GEOs 614 478
Average realized gold price per GEO US$ 1,928 US$ 1,728
Cash flow from operating activities, excluding changes in
non-cash working capital
$ 993,571 $ 149,336
First Majestic Silver Corp. (“First Majestic”) operat es the Ermitaño Mine, where the Company holds a 2.0% net
smelter return (“NSR”) royalty. For the current quarter, the Company recorded $ 1,628,409 in royalty revenue
consisting of 614 GEOs, up 29% compared to the same period in 2022 . This is a record high for the Company since
Ermitaño began production in late 2021. Production at Ermitaño included 226,292 tonnes processed containing
average gold and silver head grades of 4.09 grams per tonne (“g/t”) and 75 g/t, respectively, producing 28,367 ounces
gold and 347,941 ounces silver. Total production increased by 41% compared to the previous quarter and this was
due to higher grades and record silver and gold recoveries averaging 64% and 95%, respectively, compared to 52%
and 94%, respectively, in the previous quarter. The improvements in recoveries were driven by the new dual-circuit
plant, which allows for finer grinding and full utilization of the high intensity grinding mill.
During the current period, the Company incurred $858,323 (2022 - $802,149) in G&A expenses. This is an increase
of 7% compared to the same period in 2022 and a reduction of 10% compared to the prior quarter. The reduction in
G&A expenses was due to continued optimization of administrative functions and lower overhead costs, which were
offset by higher stock-based compensation cost for long-term equity-based compensation vested during the period.
The Company capitalized $645,109 in acquisition and exploration expenditures, received $845,053 in recoveries from
partners on alliances and option agreements, and recorded a gain of $450,227 from project sales and option
agreements. Gains are recognized in a project when total recoveries including proceeds received from sale, option
payments, and/or other reimbursement are greater than the project’s total carrying value.
To date, the Company has 26 royalties in Canada, United States, Mexico, Argentina, Kenya, and Col ombia, most of
which were generated organically through the Company’s prospect generation business. The Company also has 9
mineral properties under option, 9 projects that are available for sale or option and one alliance.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Expanded Silicon Project Update
AngloGold provided an update during the quarter on the Expanded Silicon Project that now includes both the Silicon
gold deposit and Merlin Exploration Target2. AngloGold has stated an Exploration Target3 for Merlin of 6 to 8 million
ounces gold that is in addition to 4.22 million ounces gold (3.4 million ounces indicated, and 810,000 ounces inferred
resource estimates) published for Silicon4. An initial Inferred Mineral Resource estimate for Merlin and an integrated
concept study for the Expanded Silicon Pr oject that considers synergies from the increased economy of scale and
integrated infrastructure, with potential for large scale mining 5 are expected to be completed by year -end. Orogen
holds a 1% NSR royalty on the project.
Qualified Person Statement
All technical data, as disclosed in this press release, has been verified by Laurence Pryer, Ph.D., P.Geo., VP Exploration
for Orogen. Dr. Pryer is a qualified person as defined under the terms of National Instrument 43-101.
Certain technical disclosure in this release is a summary of previously released third -party information and the
Company is relying on the interpretation provided. Additional information can be found on the links in the footnotes.
About Orogen Royalties Inc.
Orogen Royalties is focused on organic royalty creation and royalty acquisitions on precious and base metal
discoveries in western North America. The Company's royalty portfolio includes the Ermitaño gold and silver Mine in
Sonora, Mexico (2.0% NSR royalty) operated by First Majestic Silver Corp. and the Silicon -Merlin gold project (1.0%
NSR royalty) in Nevada, U.S. A, being advanced by AngloGold Ashanti. The Company is well financed with several
projects actively being developed by joint venture partners.
On Behalf of the Board
OROGEN ROYALTIES INC.
Paddy Nicol
President & CEO
To find out more about Orogen, please contact Paddy Nicol, President & CEO at 604-248-8648, and Marco LoCascio,
Vice President of Corporate Development at 604-248-8648. Visit our website at www.orogenroyalties.com.
Orogen Royalties Inc.
1015 – 789 West Pender Street
Vancouver, BC
Canada V6C 1H2
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
1. https://thevault.exchange/?get_group_doc=143/1699425939-AngloGoldAshantiQ32023-ExplorationReportFinal.pdf
2. https://thevault.exchange/?get_group_doc=143/1691123637-Interim2023MerlinExplorationTarget.pdf
3. Cautionary Note: The ranges of tonnage and grade of the Exploration Target are conceptual in nature and could
change as the proposed exploration activities are completed. There has been insufficient exploration of the
relevant property or properties to est imate a Mineral Resource at this point in time. It is uncertain if further
exploration will result in the estimation of a Mineral Resource and the Exploration Target therefore does not
represent, and should not be construed to be, an estimate of a Mineral Resource or Mineral Reserve. Given the
conceptual stage of the project, a number of risks, uncertainties and opportunities, are evident in the confidence
of the known orebody and the potential for upside at Silicon, Merlin and in the surrounding area. The Merlin
Exploration Target grade and tonnage ranges have been determined by a preliminary review of the location and
weighted average grade of the mineralised intercepts. The geology of the deposit contains a significant number
of faulted offsets, which req uire detailed geological modelling to fully define the extent and continuity of the
mineralisation. A bulk density value of 2.4 t/m 3 was used. No economic constraint has been applied to the
deposit to determine the extent of what material may ultimately be extracted.
4. https://thevault.exchange/?get_group_doc=143/1695012984-NevadaBeattyDistrictProjects-
InvestorPresentationFINAL.pdf
5. https://thevault.exchange/?get_group_doc=143/1700636741/AngloGoldNewGenGold2023SiliconPresentationNov2023w
ebv1.pdf
Forward Looking Information
This news release includes certain statements that may be deemed “forward looking statements”. All statements in this presentation, other than statements of
historical facts, that address events or developments that Orogen Royalties Inc. (the “Company“) expect to occur, are forward looking statements. Forward
looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”,
“believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur.
Although the Company believe the expectations expressed in such forward looking statements are based on reasonable assumptions, such statements are not
guarantees of future performance and actual results may differ materially from those in the forward looking statements. Fact ors that could cause the actual
results to differ materially from those in forward looking statements include market prices, exploitation and exploration successes, and continued availability of
capital and financing, and general economic, market or business conditions. Furthermore, the extent to which COVID -19 may impact the Company’s business
will depend on future developments such as the geographic spread of the disease, the duration of the outbreak, travel restrictions, physical distancing, business
closures or business disruptions, and the effectiveness of actions taken in Canada and other countries to contain and treat the disease. Although it is not possible
to reliably estimate the length or severity of these developments and their financial impact as of the date of approval of these condensed interim consolidated
financial statements, continuation of the prevailing conditions could have a significant adverse impact on the Company ’s financial position and results of
operations for future periods.
Forward-looking information in this news release includes disclosures regarding NSR royalty payments to be paid to the Company by First Majestic Silver Corp.
(“First Majestic”), the owners and operator of the Ermitaño mine located in Mexico and that the forecasted revenue which are based on First Majestic “NI 43-
101 Technical Report on Mineral Resource and Mineral Reserve Estimates” having an effective date of June 30, 2021. In additio n to the technical report, the
disclosure herein also contains and the up dated mineral reserve and resource estimates for the Ermitaño mine based on the Santa Elena Mineral Reserve ,
Resource Estimates with an effective date of December 31, 2022 as announced by First Majestic on March 31, 2023 and as disclosed in their December 31, 2022
AIF, and First Majestic’s MD&A for the period ended March 31, 2023 . Forward -looking statements are based on several material assumptions, which
management of the Company believe to be reasonable, including, but not limited to, the continuation of mining operations in respect of which the Company
will receive NSR royalty payments, that the commodity prices will not experience a material adverse change, mining operations that underlie the royalty will
operate in accordance with the disclosed parameters and other assumptions may be set out herein.
Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those
projected in the forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on
the date the statements are made. Except as required by securities laws, the Company undertakes no obligation to update these forward looking statements in
the event that management’s beliefs, estimates or opinions, or other factors, should change.
Except where otherwise stated, the disclosure in this news release relating to properties and operations in which Orogen hold s a Royalty are based on
information publicly disclosed by the owners or operators of these properties and information/data availab le in the public domain as at the date hereof, and
none of this information has been independently verified by Orogen. Specifically, as a Royalty holder and prospect generator, the Company has limited, if any,
access to properties on which it holds Royalty or other interests in its asset portfolio. The Company may from time to time receive operating information from
the owners and operators of the mining properties, which it is not permitted to disclose to the public. Orogen is dependent o n, (i) the operators of the mining
properties and their qualified persons to provide information to Orogen, or (ii) on publicly available information to prepare disclosure pertaining to properties
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
and operations on the properties on which the Company holds Royalty or other interests, and generally has limited or no abili ty to independently verify such
information. Although the Company does not have any knowledge that such information may not be accurate, there can be no assurance that such third-party
information is complete or accurate. Some reported public information in respect of a mining property may relate to a larger property area than the area covered
by Orogen’s Royalty or other interest. Orogen’s Royalty or other interests may cover less than 100% of a specific mining property and may only apply to a portion
of the publicly reported mineral reserves, mineral resources and or production from a mining property.
Non-IFRS Measures
The Company has included certain results in this news release that do not have any standardized meaning prescribed by Interna tional Financial Reporting
Standards (“IFRS”) including total GEOs sold, average realized gold price per GEO, and cash flow from operating activities excluding changes in non-cash working
capital adjustments. The Company's royalty revenue is converted to a gold equivalent ounce by dividing the royalty revenue received during the period by the
average gold price of the period. The Company has also used the non-IFRS measure of operating cash flows excluding changes in non-cash working capital. This
measure is calculated by adding back the decrease or subtracting the increase in changes in non -cash working capital to or from cash provided by (used in)
operating activities.